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UMS INTEGRATION LIMITED — Interim / Quarterly Report 2026
May 11, 2026
67613_rns_2026-05-11_e7b2eb76-db34-44ae-9e61-65e632b1374f.pdf
Interim / Quarterly Report
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UMS INTEGRATION LIMITED
COMPANY REGISTRATION NO: 200100340R
First Quarter Financial Statement And Dividend Announcement
PART I – INFORMATION REQUIRED FOR QUARTERLY (Q1, Q2 & Q3) HALF YEAR AND FULL YEAR ANNOUNCEMENTS
1 (a) An income statement and statement of comprehensive income, or a statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.
UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDED 31 MARCH 2026
| Group | |||
|---|---|---|---|
| 3 Months Ended | |||
| 31-Mar-26 | |||
| S$'000 | 31-Mar-25 | ||
| S$'000 | Change | ||
| % | |||
| Revenue (Note 8) | 69,389 | 57,654 | 20% |
| Changes in inventories | (3,802) | 7,522 | N.M |
| Raw material purchases and subcontractor charges | (29,101) | (32,927) | -12% |
| Employee benefits expense | (9,622) | (9,145) | 5% |
| Depreciation expense | (6,860) | (5,840) | 17% |
| Amortisation of intangible asset | (75) | (75) | 0% |
| Other expenses (Note (b)) | (5,830) | (5,645) | 3% |
| Other credits/(charges) (Note (c)) | 1,662 | (384) | N.M |
| Finance income (Note (a)) | 109 | 391 | -72% |
| Finance expense (Note (a)) | (124) | (127) | -2% |
| Profit before income tax | 15,746 | 11,424 | 38% |
| Income tax expense (Note (d)) | (1,541) | (1,277) | 21% |
| Net profit for the period from continuing operations | 14,205 | 10,147 | 40% |
| Profit attributable to: | |||
| Owners of the parent | 14,006 | 9,827 | 43% |
| Non-controlling interests | 199 | 320 | -38% |
| 14,205 | 10,147 | 40% | |
| Earnings per share attributable to owners of the Company (cents per share) | |||
| Basic | 1.63 | 1.38 | |
| Diluted | 1.63 | 1.38 |
NOTES TO INCOME STATEMENT
Note (a) Finance income/(expense)
| Group | |||
|---|---|---|---|
| 3 Months Ended | |||
| 31-Mar-26 | 31-Mar-25 | Change | |
| S$'000 | S$'000 | % | |
| Interest income from cash and cash equivalents | 109 | 391 | -72% |
| Interest expense on lease liabilities | (113) | (124) | -9% |
| Interest expense from bank borrowings | (11) | (3) | 267% |
| Net finance (expense)/income (Note (i)) | (15) | 264 | N.M |
Note 1 (a)(a)(i) – The decrease in interest income during the quarter was mainly due to lower fixed deposits balances.
Note (b) Other expenses
| Group | |||
|---|---|---|---|
| 3 Months Ended | |||
| 31-Mar-26 | 31-Mar-25 | Change | |
| S$'000 | S$'000 | % | |
| Legal and professional fees (Note (i)) | (849) | (725) | 17% |
| Utilities (Note (ii)) | (1,924) | (1,999) | -4% |
| Freight charges (Note (iii)) | (421) | (218) | 93% |
| Insurance | (243) | (182) | 34% |
| Upkeep of properties and equipment | (536) | (551) | -3% |
| Upkeep of machinery | (662) | (776) | -15% |
| Others | (1,195) | (1,194) | 0% |
| (5,830) | (5,645) | 3% |
Note 1(a)(b)(i) – Professional fees relates mainly to amounts payable to the Group's sales consultant. Refer to Note 13.
Note 1(a)(b)(ii) – The decrease in utilities was mainly due to the impact of revised electricity tariffs in Malaysia, including adjustments in pass-through cost components, which resulted in lower overall electricity charges during the quarter.
Note 1(a)(b)(iii) – The increase was mainly due to higher material purchases.
Note (c) Other credits/(charges)
| Group | |||
|---|---|---|---|
| 3 Months Ended | |||
| 31-Mar-26 | 31-Mar-25 | Change | |
| S$'000 | S$'000 | % | |
| Foreign exchange gain/(losses) - net (Note (i)) | 1,521 | (1,051) | N.M |
| Gain on disposal of property, plant and equipment | 29 | 645 | -96% |
| Property, plant & equipment written off | - | (29) | -100% |
| Others | 112 | 51 | 120% |
| 1,662 | (384) | N.M |
Note 1(a)(c)(i) – The net exchange gain was mainly due to the strengthening of the US dollar and Malaysian Ringgit during the period.
Note (d) Income tax
| Group | |||
|---|---|---|---|
| 3 Months Ended | |||
| 31-Mar-26 | 31-Mar-25 | Change | |
| S$'000 | S$'000 | % | |
| Current income tax: | |||
| - Current year | (1,546) | (1,548) | 0% |
| - Over/(under) provision in respect of prior years | 46 | (2) | N.M |
| Deferred taxation: | |||
| - Current year | (41) | 273 | N.M |
| (1,541) | (1,277) | 21% |
1(b)(i) A statement of financial position (for the issuer and the group), together with a comparative statement as at the end of the immediately preceding financial year.
| Group | Company | |||
|---|---|---|---|---|
| 31 Mar 2026 | 31 Dec 2025 | 31 Mar 2026 | 31 Dec 2025 | |
| S$'000 | S$'000 | S$'000 | S$'000 | |
| ASSETS | ||||
| Current Assets | ||||
| Cash and bank balances (Note (ii)) | 34,315 | 43,063 | 353 | 458 |
| Trade receivables and other current assets (Note (iii)) | 63,646 | 42,812 | 49,423 | 47,840 |
| Loan to subsidiary | - | - | 1,646 | 1,873 |
| Inventories | 148,155 | 151,957 | - | - |
| Total Current Assets | 246,116 | 237,832 | 51,422 | 50,171 |
| Non-Current Assets | ||||
| Investment in subsidiaries (Note (i)) | - | - | 278,944 | 270,724 |
| Property, plant and equipment | 194,731 | 194,370 | - | - |
| Right-of-use assets | 8,660 | 8,832 | - | - |
| Intangible assets | 87,276 | 87,351 | - | - |
| Loan to a subsidiary | - | - | 9,639 | 9,639 |
| Deferred tax assets | 159 | 159 | - | - |
| Total Non-Current Assets | 290,826 | 290,712 | 288,583 | 280,363 |
| Total Assets | 536,942 | 528,544 | 340,005 | 330,534 |
| LIABILITIES AND EQUITY | ||||
| Current Liabilities | ||||
| Bank borrowings (Note 1(b)(ii)) | 8,300 | - | 8,300 | - |
| Trade and other payables (Note (iv)) | 39,476 | 47,044 | 9,993 | 10,081 |
| Lease liabilities | 1,804 | 1,831 | - | - |
| Income tax payable | 6,167 | 4,586 | 219 | 219 |
| Total Current Liabilities | 55,747 | 53,461 | 18,512 | 10,300 |
| Non Current Liabilities | ||||
| Deferred tax liabilities | 10,472 | 10,432 | - | - |
| Long-term provision* | 405 | 405 | - | - |
| Lease liabilities | 7,616 | 7,740 | - | - |
| Total Non-Current Liabilities | 18,493 | 18,577 | - | - |
| Total Liabilities | 74,240 | 72,038 | 18,512 | 10,300 |
| Capital and Reserves | ||||
| Share Capital (Note 1(b)(ii)) | 186,541 | 186,541 | 186,541 | 186,541 |
| Treasury shares | (145) | (145) | - | - |
| Reserves | (8,770) | (8,978) | - | - |
| Retained earnings | 266,182 | 251,268 | 134,952 | 133,693 |
| 443,808 | 428,686 | 321,493 | 320,234 | |
| Non-controlling interests | 18,894 | 27,820 | - | - |
| Total Equity | 462,702 | 456,506 | 321,493 | 320,234 |
| Total Liabilities and Equity | 536,942 | 528,544 | 340,005 | 330,534 |
- Provision for reinstatement of leased premises.
Note 1 (b)(i)(i) Investment in Subsidiaries
The details of the subsidiaries as at 31 March 2026 are as follows:
| Name | Effective percentage of equity held by the group | Company's cost of investment | ||
|---|---|---|---|---|
| 31-Mar-2026 | 31-Dec-2025 | 31-Mar-2026 | 31-Dec-2025 | |
| % | % | S$'000 | S$'000 | |
| Held by the Company | ||||
| UMS Systems Pte Ltd (Singapore) | 100 | 100 | 9,561 | 9,561 |
| UMS International Pte Ltd (Singapore) | 100 | 100 | 800 | 800 |
| UMS Pte Ltd (Singapore) | 100 | 100 | 127,081 | 127,081 |
| UMS Aerospace Pte Ltd (Singapore) | 100 | 100 | 20,000 | 20,000 |
| Integrated Manufacturing Technologies Pte Ltd (Singapore) | 100 | 100 | 19,803 | 19,803 |
| Ultimate Machining Solutions (M) Sdn. Bhd. (Malaysia) | 100 | 100 | 30,772 | 30,772 |
| Kalf Engineering Pte Ltd (Singapore) | 51 | 51 | 990 | 990 |
| Starke Singapore Pte Ltd* (Singapore) | 100 | 70 | 15,296 | 7,076 |
| Ultimate Mechanical System Sdn. Bhd. (Malaysia) | 100 | 100 | 7,643 | 7,643 |
| JEP Holdings Limited (Singapore) | 80 | 80 | 71,786 | 71,786 |
| Unquoted equity shares, at cost | 303,732 | 295,512 | ||
| Less: Provision for impairment | (24,788) | (24,788) | ||
| 278,944 | 270,724 | |||
| Held through UMS International Pte Ltd | ||||
| Ultimate Manufacturing Solutions (M) Sdn. Bhd. (Malaysia) | 100 | 100 | - | - |
| Held through UMS Pte Ltd | ||||
| UMS Solutions Pte Ltd (Singapore) | 100 | 100 | - | - |
| Held through Kalf Engineering Pte. Ltd. | ||||
| 浙江凯富环境治理工程有限公司 (People's Republic of China) | 51 | 51 | - | - |
| Held through Starke Singapore Pte Ltd | ||||
| Starke Asia Sdn. Bhd. (Malaysia) | 100 | 70 | - | - |
| Held through Ultimate Machining Solutions (M) Sdn. Bhd | ||||
| AllStar Manufacturing Sdn. Bhd. (Malaysia) | 100 | 100 | - | - |
Note 1 (b)(i)(i) Investment in Subsidiaries (cont'd)
The details of the subsidiaries as at 31 March 2026 are as follows: (cont'd)
| Name | Effective percentage of equity held by the group | Company's cost of investment | ||
|---|---|---|---|---|
| 31-Mar-2026 % | 31-Dec-2025 % | 31-Mar-2026 S$'000 | 31-Dec-2025 S$'000 | |
| Held through UMS Aerospace Pte Ltd | ||||
| Integrated Manufacturing Technologies Inc. | ||||
| (United States) | 100 | 100 | - | - |
| Held through JEP Holdings Limited | ||||
| JEP Precision Engineering Pte Ltd | ||||
| (Singapore) | 80 | 80 | - | - |
| JEP Industries Pte Ltd | ||||
| (Singapore) | 80 | 80 | - | - |
| JEP Engineering Pte Ltd | ||||
| (Singapore) | 80 | 80 | - | - |
| JEP Precision Engineering (M) Sdn. Bhd. | ||||
| (Malaysia) | 80 | 80 | - | - |
- On 2 March 2026, the Company entered into a sale and purchase agreement with non-controlling interests to acquire the remaining 30% equity interest in Starke Singapore Pte. Ltd. for a consideration of S$8,219,782, based on the net book value of the entity as at 31 August 2025. The acquisition was completed on the same date, resulting in Starke Singapore Pte. Ltd. becoming a wholly owned subsidiary of the Company.
Note 1(b)(i)(ii) – The net decrease in cash and cash equivalents by S$17.0 million (after netting-off bank borrowing) was mainly due to the net cash used in operating activities of S$4.9 million, capex of S$4.0 million and S$8.2 million consideration paid for acquisition of the remaining 30% equity interest in Starke Singapore Pte Ltd.
Note 1(b)(i)(iii) – Trade and other receivables increased by S$20.8 million, mainly due to the delay in payment of a customer resulting from changes in their IT system which have since been resolved. All overdue balances have since been received.
Note 1(b)(i)(iv) – Trade and other payables decreased by S$7.6 million, mainly due to bonus payments made during the quarter.
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
| Group | ||
|---|---|---|
| 3 Months Ended | ||
| 31-Mar-26 | 31-Mar-25 | |
| S$'000 | S$'000 | |
| Cash flows from operating activities | ||
| Profit before income tax | 15,746 | 11,424 |
| Adjustments for: | ||
| Depreciation expense | 6,860 | 5,840 |
| Amortisation of intangible assets | 75 | 75 |
| Gain on disposal of property, plant and equipment | (29) | (645) |
| Property, plant and equipment written off | - | 29 |
| Interest income | (109) | (391) |
| Interest expense | 124 | 127 |
| Unrealised foreign exchange (gain)/loss | (1,502) | 236 |
| Operating cash flows before working capital changes | 21,165 | 16,695 |
| Change in working capital: | ||
| Trade receivables and other current assets | (11,723) | 1,325 |
| Inventories | 3,802 | (7,522) |
| Trade and other payables | (17,302) | 1,370 |
| Cash generated from operations | (4,058) | 11,868 |
| Income tax paid | (808) | (213) |
| Net cash (used in)/generated from operating activities | (4,866) | 11,655 |
| Cash flows from investing activities | ||
| Proceeds from disposal of property, plant and equipment | 81 | 674 |
| Purchase of property, plant and equipment (Note 1(c)(i)) | (3,992) | (10,984) |
| Interest received | 109 | 391 |
| Net cash used in investing activities | (3,802) | (9,919) |
| Cash flows from financing activities | ||
| Proceeds from bank borrowings | 8,300 | - |
| Repayment of bank borrowings | - | (215) |
| Interest paid | - | (3) |
| - | (218) | |
| Repayment of lease liabilities | (163) | (161) |
| Interest paid | (113) | (124) |
| (276) | (285) | |
| Consideration paid for acquisition of non-controlling interests | (8,220) | - |
| Net cash used in financing activities | (196) | (503) |
| Net (decrease)/increase in cash and cash equivalents | (8,864) | 1,233 |
| Net effect of exchange rate changes | 116 | 732 |
| Cash and cash equivalents at beginning of the period | 43,063 | 79,928 |
| Cash and cash equivalents at end of the period | 34,315 | 81,893 |
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
The reconciliation of purchase of property, plant and equipment ("PPE") is presented below:
| Group | ||
|---|---|---|
| 31-Mar-26 | 31-Mar-25 | |
| Note 1c(i) | S$'000 | S$'000 |
| Purchase of property, plant and equipment | ||
| Total additions | 6,791 | 11,559 |
| Movement in downpayment to suppliers of PPE | (2,799) | (575) |
| Net cash outflow | 3,992 | 22,543 |
1(d) A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.
| Group | |||
|---|---|---|---|
| 3 Months Ended | |||
| 31-Mar-26 S$'000 | 31-Mar-25 S$'000 | Change % | |
| Net Profit for the period | 14,205 | 10,147 | 40% |
| Other comprehensive income/(loss), net of income tax: | |||
| Items that may be reclassified subsequently to profit and loss: | |||
| Exchange differences on translation of foreign operations | 211 | (877) | N.M |
| Total comprehensive income for the period | 14,416 | 9,270 | 56% |
| Attributable to: | |||
| Equity holders of the Company | 14,214 | 8,943 | 59% |
| Non-controlling interests | 202 | 327 | -38% |
| 14,416 | 9,270 | 56% |
1(e)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalization issues and distribution to shareholders, together with a comparative statement for the corresponding period of the immediate preceding financial year.
| Attributable to owners of the Company | |||||||
|---|---|---|---|---|---|---|---|
| Share Capital | Treasury Shares | Foreign Exchange Translation Reserve | Retained Earnings | Total | Non-controlling Interests | Total | |
| S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | |
| Group | |||||||
| Balance at 1 January 2026 | 186,541 | (145) | (8,978) | 251,268 | 428,686 | 27,820 | 456,506 |
| Changes in equity for first quarter | |||||||
| Net profit for the period | - | - | - | 14,006 | 14,006 | 199 | 14,205 |
| Other comprehensive income for the period- Exchange differences on translation of foreign operations | - | - | 208 | - | 208 | 3 | 211 |
| Total comprehensive income for the quarter | - | - | 208 | 14,006 | 14,214 | 202 | 14,416 |
| Consideration paid for acquisition of non-controlling interests | - | - | - | 908 | 908 | (9,128) | (8,220) |
| Balance at 31 March 2026 | 186,541 | (145) | (8,770) | 266,182 | 443,808 | 18,894 | 462,702 |
| Attributable to owners of the Company | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Share Capital | Treasury Shares | Foreign Exchange Translation Reserve | Retained Earnings | Total | Non-controlling Interests | Total | |
| S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | |
| Group | |||||||
| Balance at 1 January 2025 | 186,541 | (145) | (13,354) | 245,204 | 418,246 | 25,673 | 443,919 |
| Changes in equity for first quarter | |||||||
| Net profit for the period | - | - | - | 9,827 | 9,827 | 320 | 10,147 |
| Other comprehensive (loss)/income for the period- Exchange differences on translation of foreign operations | - | - | (884) | - | (884) | 7 | (877) |
| Total comprehensive (loss)/income for the quarter | - | - | (884) | 9,827 | 8,943 | 327 | 9,270 |
| Balance at 31 March 2025 | 186,541 | (145) | (14,238) | 255,031 | 427,189 | 26,000 | 453,189 |
10
| Attributable to owners of the Company | |||
|---|---|---|---|
| Share Capital | Retained Earnings | Total | |
| S$'000 | S$'000 | S$'000 | |
| Company | |||
| Balance at 1 January 2026 | 186,541 | 133,693 | 320,234 |
| Changes in equity for first quarter | |||
| Net profit for the period | - | 1,259 | 1,259 |
| Total comprehensive income for the quarter | - | 1,259 | 1,259 |
| Balance at 31 March 2026 | 186,541 | 134,952 | 321,493 |
| Attributable to owners of the Company | |||
| Share Capital | Retained Earnings | Total | |
| S$'000 | S$'000 | S$'000 | |
| Company | |||
| Balance at 1 January 2025 | 186,541 | 46,415 | 232,956 |
| Changes in equity for first quarter | |||
| Net profit for the period | - | 85,093 | 85,093 |
| Total comprehensive income for the quarter | - | 85,093 | 85,093 |
| Balance at 31 March 2025 | 186,541 | 131,508 | 318,049 |
1(e)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, subdivision, consolidation share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purposes since the end of the previous period reported on. State the number of shares that may be issued on conversion of all outstanding convertibles, if any, against the total number of issued shares excluding treasury shares and subsidiary holdings of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. State also the number of shares held as treasury shares and the number of subsidiary holdings, if any, and the percentage of the aggregate number of treasury shares and subsidiary holdings held against the total number of shares outstanding in a class that is listed as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.
During the quarter, the Company allotted and issued 177,631,915 bonus shares to shareholders. The bonus shares were listed and quoted on the Mainboard of the Singapore Exchange Securities Trading Limited on 19 January 2026.
1(e)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.
The total number of issued shares excluding treasury shares as at 31 March 2026 was 888,167,856 (31 December 2025: 710,535,941).
1(e)(iv) A statement showing all sales, transfers, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
There were no sales, transfers, cancellation and/or use of treasury shares by the company during the first quarter ended 31 March 2026.
1(e)(v) A statement showing all sales, transfers, cancellation and/or use of subsidiary holdings as at the end of the current financial period reported on.
There were no sales, transfers, cancellation and/or use of subsidiary holdings as at 31 March 2026.
2 Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice.
The figures have not been audited or reviewed by our external auditors.
3 Where the figures have been audited or reviewed, the auditors' report (including and qualifications or emphasis of matter).
Not applicable.
4 Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
Except as stated in Note 5, the Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period as those of the audited financial statements for the financial year ended 31 December 2025.
5 If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reason for, and the effect of the change.
The adoption of new and revised standards did not have substantial effect on the financial performance and position of the Group for the current financial period ended 31 March 2026.
6 Earnings per ordinary share of the Group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.
| Group | ||
|---|---|---|
| 3 Months Ended | ||
| 31-Mar-26 | 31-Mar-25 | |
| Earnings per ordinary share of the Group based on net profit attributable to owners of the company:- | ||
| (a) Based on the weighted average number of ordinary shares on issue | 1.63 cents | 1.38 cents |
| - Weighted average number of shares (excluding treasury shares) | 858,229,893 | 710,535,941 |
| (b) On a fully diluted basis | 1.63 cents | 1.38 cents |
| - Weighted average number of shares (excluding treasury shares) | 858,229,893 | 710,535,941 |
7 Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediate preceding financial year.
| Group | Company | |||
|---|---|---|---|---|
| 31-Mar-26 | 31-Dec-25 | 31-Mar-26 | 31-Dec-25 | |
| Net asset value per ordinary share based on total number of issued shares (excluding treasury shares) | 49.99 cents | 60.35 cents | 36.20 cents | 45.07 cents |
| Total number of issued shares (excluding treasury shares) | 888,167,856 | 710,535,941 | 888,167,856 | 710,535,941 |
A review of the performance of the Group, to the extent necessary for a reasonable understanding of the Group's business. It must include a discussion on the following:
(a) any significant factors that affected the turnover, costs and earnings of the Group for the current financial period reported on, including (where applicable) seasonable or cyclical factors; and
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the Group during the current financial period reported on.
Revenue
1Q2026 vs 1Q2025
| Group | ||
|---|---|---|
| 3 Months Ended | ||
| 31-Mar-26 | 31-Mar-25 | Change |
| S$'000 | S$'000 | % |
| 58,926 | 48,601 | 21% |
| 7,278 | 6,170 | 18% |
| 3,185 | 2,883 | 10% |
| 69,389 | 57,654 | 20% |
| 39,203 | 35,670 | 10% |
| 6,443 | 7,284 | -12% |
| 5,938 | 3,645 | 63% |
| 12,027 | 9,431 | 28% |
| 5,778 | 1,624 | 256% |
| 69,389 | 57,654 | 20% |
1QFY2026
Group revenue in 1QFY2026 leapt 20% to S$69.4 million as compared to S$57.7 million in 1QFY2025 on the back of stronger performances from all its key business segments. Its Semiconductor and Aerospace businesses grew 21% and 18% respectively while its Others segment rose 10%.
The Group's semiconductor sales surge was boosted by higher revenues from both Semiconductor components and Integrated Systems.
Semiconductor component sales jumped 26% from S$28.9 million in 1QFY2025 to S$36.5 million in 1QFY2026 - driven by higher demand from its new customer. Semiconductor Integrated System ("IS") grew 14% from S$19.7 million to S$22.4 million during the same period.
On a sequential basis - compared to 4QFY2025 - its 1QFY2026 Semiconductor IS sales dipped by about 10% from S$25 million while component sales increased 15% from S$31.9 million to S$36.5 million in 1QFY2026.
Compared to 1QFY2025, Aerospace revenue jumped 18% to S$7.3 million in 1QFY2026 - lifted by the robust global aviation demand.
Sales in the Others segment also grew 10% - mainly due to the recovery of its material distribution business.
Geographically, all the Group's key markets, except for US, reported higher revenue in 1QFY2026. Lower semiconductor and aerospace component shipments caused the 12% decline in US sales.
All the other Group's markets recorded strong double-digit growth while sales in the Others market soared 256% vs 1QFY2025 with the surge in shipment of semiconductor components to the Group's new major customer's location in Korea. Similarly, revenue in Taiwan grew 63% in 1QFY2026 to S$5.9 million – on the back of higher component sales to the Group's new major customer's location in Taiwan.
Revenue in Malaysia also climbed 28% to S$12 million in 1QFY2026 vs S$9.4 million in 1QFY2025 as the Group continued to ramp up production of semiconductor components for the new major customer. Revenue in Singapore in 1QFY2026 rose 10% as compared to 1Q2025 mainly due to higher shipment of semiconductor Integrated System ("IS") sales.
12
13
Profitability
1QFY2026
The Group's bottomline surged in the first quarter of 2026 despite a dip in its gross material margin from 56% in 1QFY2025 vs to 53% in 1QFY2026, caused mainly by the lower USD/SGD exchange rate during the period under review.
In terms of profitability, the Group's net attributable profit leapt 43% to S$14.0 million from S$9.8 million in 1QFY2025. Net profit also climbed 40% to S$14.2 million from S$10.1 million while pre-tax profit advanced 38% to S$15.7 million from S$11.4 million during the same period.
Higher sales and foreign exchange gain of S$1.5 million (vs a loss of over S$1.05 million in 1QFY2025) helped lift the Group's profitability in the first quarter of the year. The foreign exchange gain was partially offset by lower gains on disposal of fixed assets of S$0.6 million. The Group reversed a charge of S$0.4 million to a gain of S$1.7 million in the current quarter.
The Group took steps to control overall expenses. While personnel costs and depreciation increased, the Group's other expenses edged up just 3% in the first quarter of the year. Except for professional fees, freight charges and insurance, all other costs stayed flat or declined.
Compared to 1QFY2025, personnel costs rose 6% mainly due to higher bonus provisions. Depreciation expenses rose 17% as the Group added more production equipment.
Cashflow
1QFY2026
The Group's financial position remains healthy with net cash of S$26.0 million as at the end of March 2026.
The Group registered negative S$4.9 million (vs 1QFY2025: positive S$11.7 million) net cash from operating activities and negative $8.8M (1QFY2025: positive S$1.3 million) free cash flow in 1Q2026 due to higher working capital required to support the Group's business growth and the payment of executive bonus during the quarter. The lower cashflow was also caused by a payment delay from one of its customers due to changes in the customer's IT system. This issue has since been resolved and all overdue balances have been received.
The Group also took an S$8.3 million short term loan to finance the acquisition of its remaining 30% stake in its subsidiary - Starke Singapore - which has now become a fully-owned subsidiary.
9 Where a forecast, or prospect statement has been previously disclosed to the shareholders, any variance between it and the actual results.
The current announced results are in line with the general prospect commentary previously disclosed to shareholders in the previous announcement made on 27 February 2026.
10
A commentary at the date of announcement of the significant trends and competitive conditions of the industry in which the Group operates and any known factors or events that may affect the Group in the next reporting period and the next 12 months.
The Group delivered a robust performance in the first quarter of the year with better top and bottomlines – benefitting from AI-driven increases in demand for deposition, etch and advanced packaging tools across memory, foundry chipmakers as well as the continued resilience in global aviation despite ongoing global conflicts and challenges in fuel supplies.
The Group's key customers' order forecasts remain robust as they continue firing on all cylinders to meet unprecedented AI-driven chip demand. UMS Integration supplies critical components to its key customers' advanced packaging tools and is participating in next generation advanced packaging technology supply chain.
Both the Group's key customers reported first quarter results that beat revenue estimates.
Its main key customer expects to grow its semiconductor equipment business over 20% in 2026¹, while its new key customer delivered record revenue and EPS in the March quarter this year as AI-driven demand continues to reshape the semiconductor industry, and the velocity of its execution are expected to generate strong momentum, enabling customers' AI roadmaps and driving the Group's outperformance during this critical phase of industry growth.²
The order flow from the Group's new key customer remains very strong, as it seeks to divert its US supply source to Asia. In the coming months, the Group will carry on with qualifications of many new product introductions (NPI) for this new key customer.
The Group also expects its IS demand to increase as its existing key customer's outlook stays strong due to higher semiconductor capital spending from 2026 through 2028, as chipmakers keep putting money into advanced-node capacity to build more complex processors.³
Having delivered a record performance in 2025 with annual revenue reaching $791.7 billion, up 25.6% from the previous year, the global semiconductor industry is on track to top $1 trillion in sales in 2026, according to data released by the Semiconductor Industry Association (SIA) based on World Semiconductor Trade Statistics (WSTS). The record revenue will be driven by demand from the AI sector and, to some degree, elevated prices on virtually all types of microelectronics.⁴
Industry experts are also seeing the industry entering a "giga cycle" of growth. Memory and packaging remain the tightest constraints. HBM revenue is forecast to grow from roughly $16 billion in 2024 to more than $100 billion by 2030. Each HBM generation consumes a larger share of wafer supply than conventional DRAM, pushing the broader memory market upward as AI clusters scale. Advanced packaging faces similar pressure as CoWoS capacity is projected to expand by more than 60% from the end of 2025 to the end of 2026.⁵
According to industry leaders, the industry is only in year two of a 'massive ten-year cycle' of rapid AI advancements and infrastructure build-out.⁶
Moore's Law, predicting the doubling of transistors on a chip every two years, is no longer sufficient to guarantee success. Chipmakers need "more than Moore" and are looking into advanced packaging technologies to improve chip performance.
The Group's Aerospace business, which lifted the Group's bottom line during the period under review, will persist with its strong efforts in driving earnings growth. The global aerospace industry is poised for continued expansion, driven by factors like increasing air travel demand and advancements in technology.
According to IATA, global air passenger demand is expected to more than double by 2050. Asia-Pacific and Africa are expected to be the fastest-growing regions over 2024-2050, with CAGRs of 3.8% and 3.6% respectively. Europe and North America are projected to grow more slowly, at 2.5% and 2.8%.⁷
Commercial aircraft orders rose 9% year-on-year in the first quarter of 2026 to reach 569, marking the strongest start to a year for the sector since 2013, according to UK trade association ADS Group's latest Economic Briefing. There is a positive trend in wide-body aircraft, where deliveries rose 13% year-on-year to their highest first-quarter level since 2020, suggesting gradual improvements in production pipelines.
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10
A commentary at the date of announcement of the significant trends and competitive conditions of the industry in which the Group operates and any known factors or events that may affect the Group in the next reporting period and the next 12 months. (cont'd)
The aviation industry's long-term outlook remains robust, with the global order backlog reaching a record 16,656 aircraft. At current production rates, the figures point to continued resilience across the sector. Rising orders reflect sustained market demand, even as geopolitical and macroeconomic pressures persist.⁸
In view of these robust trends, the Group remains optimistic of brighter prospects and will leverage its strong balance sheet and financial position to enhance its ability to navigate the ongoing global volatility and deliver long-term value to shareholders.
Going forward, the Group will also utilise the UMS Employee Share Option scheme (ESOS) and the UMS Performance Share Plan (PSP) to help improve staff recruitment and retention in the months and years ahead.
In view of the Group's healthy performance and financial position, the Board has recommended to maintain a 1 cent dividend for 1QFY2026 to reward shareholders.
Barring any unforeseen circumstances, the Group expects to achieve better performance for FY2026.
Sources:
- https://ir.appliedmaterials.com/news-releases/news-release-details/applied-materials-announces-first-quarter-2026-results
- https://filecache.investorroom.com/mr5ir_lamresearch2/1475/LRCX_Ex hibit_99.1_Q3_2026.pdf
- https://finance.yahoo.com/markets/stocks/articles/b-riley-bullish-applied-materials-174206768.html
- https://www.tomshardware.com/tech-industry/semiconductors/semiconductor-industry-on-track-to-hit-usd1-trillion-in-sales-in-2026-sia-predicts-bumper-forecast-follows-usd791-7-billion-haul-for-2025
- https://www.tomshardware.com/tech-industry/semiconductors/semiconductor-industry-enters-giga-cycle-as-ai-infrastructure-spending-reshapes-demand
- https://www.aol.com/finance/amd-ceo-says-only-2-160052389.html
- https://www.iata.org/en/pressroom/2026-releases/2026-03-17-01/
- https://www.themanufacturer.com/articles/aircraft-orders-hit-highest-first-quarter-total-since-2013/
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11 Dividend
(a) Current Financial Period Reported
Any dividend declared for the current financial period reported on? Yes
| Name of Dividend | Proposed Interim Dividend |
|---|---|
| Dividend Type | Cash |
| Dividend Amount (SGD) | 1.0 cent per ordinary share, (tax exempt one-tier) |
| Tax rate | Not applicable |
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year? Yes
| Name of Dividend | Proposed Interim Dividend |
|---|---|
| Dividend Type | Cash |
| Dividend Amount (SGD) | 1.0 cent per ordinary share, (tax exempt one-tier) |
| Tax rate | Not applicable |
(c) Date payable
24 July 2026.
(d) Record date
NOTICE IS HEREBY GIVEN THAT the Share Transfer Books and Register of Members of the Company will be closed on 10 July 2026, for the purpose of determining members' entitlements to the First Interim Dividend of 1.0 cent per ordinary share (tax-exempt one-tier) for the financial year ending 31 December 2026.
Duly completed registrable transfers received by the Company's Share Registrar, In.Corp Corporate Services Pte. Ltd., 36 Robinson Road #20-01 City House Singapore 068877 up to the close of business at 5.00 p.m. on 13 July 2026 will be registered before entitlement to the First Interim Dividend is determined. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 13 July 2026 will be entitled to the First Interim Dividend.
Duly completed registrable transfers of Shares received by the Company's share registrar in Malaysia, Securities Services (Holdings) Sdn. Bhd., Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights 50490 Kuala Lumpur, Malaysia, no later than 5.00 p.m. on 13 July 2026 will be registered before entitlements to the First Interim Dividend are determined.
For the purpose of determining the Shareholders registered under the register of members in Singapore and the register of members in Malaysia for receiving the First Interim Dividend in Singapore dollar or Malaysia Ringgit respectively, any removal of the Shares between the register of members in Singapore and the register of members in Malaysia has to be made by the Shareholders no later than 5:00 p.m. on 26 June 2026 in order to be effected before the payment of the First Interim Dividend.
The exchange rate for converting Singapore Dollars into Malaysian Ringgit for the purpose of payment to the Shareholders registered under the register of members in Malaysia will be based on the official exchange rate of SGD 1 to MYR 3.09, as quoted by the Central Bank of Malaysia. Accordingly, the First Interim Dividend payable to Shareholders registered under the register of members in Malaysia will be MYR 3.09 cents per ordinary share.
Payment of the First Interim Dividend will be made on 24 July 2026.
12 If no dividend has been declared/recommended, a statement to that effect.
Not applicable.
16
13
If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920 (1) (a) (ii). If no IPT mandate has been obtained, a statement to that effect.
| Name of interested person | Nature of Relationship | 3 Months Period Ended 31 March 2026 |
|---|---|---|
| Aggregate value of all interested person transactions during the financial period under review (excluding transactions less than $100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920 of the SGX Listing Manual) | ||
| S$'000 | ||
| Sure Achieve Consultant Pte Ltd | ||
| Consultancy Services charges and commission | Transaction above is with Sure Achieve Consultant Pte Ltd in which Mrs. Sylvia SY Lee Luong is a director and shareholder. She is the wife of the CEO of the Group, Mr. Luong Andy. |
The aggregate value of IPT entered into between the Group and Sure Achieve Consultant Pte Ltd for the period ended 31 March 2026 amounted to S$595,000 which represents approximately 0.16% of the Group's latest audited net tangible assets as at 31 December 2025. | 595 |
BY ORDER OF THE BOARD
Luong Andy
Chief Executive Officer
11 May 2026
17